Cryptocurrency


downloadAlthough there have been many discussions happening around the globe on the future of cryptocurrency and opinions are in different hue and nature , many of them say that it is going to be the future how the world is going to transact or some other says cryptocurrencies are just a bubble which is not going to last too long. But the reality is that value of this decentralized currency has been going up for quite some time. Majority of the central banker’s has not accepted this form of the value of currency stored in digital form, however, the demand for cryptocurrencies has been going up day by day. The question largely would be what will be the implications if across the world people start using this form digital currency more often than usual. Yes if that happens world would witness a new form transactions where no government or central bank having any control or right on the transactions, You can transact with anyone from the across the globe immediately without any hassles.

Demystifying Cryptocurrency

At present, if we want to buy something through online we initiate transactions from our end, the bank or the credit act as an intermediary between the two ends. These intermediaries like bank or card company charge you with certain transaction cost as well as helps them track our transactions and our buying behaviour because everything transactions pass through a central ledger maintained by the bank where all the transactions will be captured. So if you want to keep the transactions directly between the buyer and end-user cryptocurrencies is the answer where nobody can track the transactions and its information. So in 2008, a new innovative idea was born where no banks or card companies could maintain a central ledger, But in the case of cryptocurrency instead of the central ledger, it becomes decentralized where real-time ledgers were created at every point of transactions called blockchain.

How it benefits

 This helps to create direct transactions without any intermediary.
 No restrictions for transactions across the national borders.
 Future wealth could be stored in cryptocurrencies without any theft and fraud
 No government or central banks have the control to freeze the account as they are able to do now.
 Unlike the currencies which are at present issued by central banks, Bitcoins are not issued by central banks.

Prominent cryptocurrencies available today

1) Bitcoin
2) Litecoin(LTC)
3) Ethereum(ETH)
4) Zcash(ZEC)
5) DASH( Previously known as Darkcoin)
6) Ripple(XRP)
7) Monero(XMR)

Still among the pack Bitcoin has been the most favourite among the users and followed by Ethereum and Ripple which are mostly used for enterprise solutions. But how these new digital currencies are going to change the way we transact now remains to be seen. In our country, RBI and Govt have not given green signal to accept the digital currency but constituted a committee to study its prospects and who knows central bank itself would come out with its own form of cryptocurrency. Let’s keep our fingers crossed and see what happens, but one thing is sure such technologies are going to disrupt the way at least the coming generations are going to transact in the future.

 

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The world largest media companies


images in digital spaceYes, the changes are inevitable in life similar  is  what happening  to   Print media  advertising space  as well . Traditional print media  advertisement is fastly  becoming a thing of the past   slowly and swiftly  digital advertisement has started  playing a major role  take  the art of advertisements to new levels  . It is quite evident from the recent trends that  shift in preference to digital media over print media is gaining faster momentum .  The media houses  faced with stagnant revenue are slowly moving to digital space or developing new platforms or extending their services. However, the competition in digital space is far more intense with barriers to entry is easier  and  effectively  zero distribution cost.

Out of the top  30 media companies , five top media companies generated revenue of US$88bn, which is the 34% of the total revenue generated by the top 30 companies. Digital ad spend has grown at average 18 % for the last five years powered by the growth in mobile users, social media and online videos.

google tops the list with $59.6 billion , the company generates tens of billions of dollars in every year from selling advertisement through online services mostly google search.

 

chartoftheday_4943_top_10_media_companies_n

Is Digital Commerce going to be the next big thing in India?


The likes of Bansals , founder of Flipkart has already found their place in Forbe’s list of billionaires , So is the digital commerce going to be  next big thing in India?, Has our  consumer’s buying pattern a reason to feel confident that , digital commerce is going to flourish in the coming years? , For all this questions the answer is a confident “Yes”.

Digital commerce or mobile commerce or it is commonly called e-commerce business models found favor among the population  who uses internet or Mobile, I believe their sense of exuberance which is their in the air, If you look the total size of India’s present e commerce industry, it is full of hopes, dreams & aspiration which is built around the prospect of capturing the market potential of retailing the products through online. Every time when you see advertisement in the television roughly more 30 to 40 % represents the e-commerce company’s ads, be it in finance, apparels, furniture, groceries, travel, and hotels etc.

Today every one who has a dream ,idea to start a venture generally prefers to build a value proposition by leveraging the online platforms to promote their products & services . The reasons to prefer the online model of business is very simple.

  • The requirements of setting up go downs, over head costs are less compared to traditional business models.
  • The cost of setting up an online business is very less compared to brick and mortar business models.
  • The idea of  providing a digital platform for all retailers to come together under one roof , so they gets the edge and reach to market their products & services by  with out any geographic constraints.
  •  E-commerce or Digital platforms could rein the opportunity to drive in volume by offering deals, or mega sales in a short notice as when required with minimum time frame& cost.

Digital Buyers in India from 2011 to 2016

The number of digital buyers in India shows a positive trend as per the data in 2011 it was just 15 million and over period of four years it has reached 35 million users or it has grown 2.5 times , in 2016 the figure is expected to reach above 40 million , but assume with a population of 1.2 billion , with growing penetration of mobile & internet , the potential turns out to be huge . I feel surprised to hear that even present generation cricketers has shown interest to get their hands soaked   via investment in e-commerce ventures.

number of digital buyersRetail E-commerce sales in India from 2012 to 2018

It is no surprise that founders of established e-retailers has grown fast  , became billionaires with in a very short span of time , If they were in to traditional form of business I  think they would have taken more time to be in billionaires club , of course established one’s in no time is able to attract the eyes of venture capitalists & investors than any other business in the near future. As per the data, sales in 2015 is going to be 7.69 billion and it would touch 17.52 billion in 2018. So it means every person out of the 1.2 billion would be prefer using the digital route or more prone to use this growing medium.

Retail e-commerce salesPenetration of digital buyer in Asia Pacific

The penetration of digital buyer in Asia Pacific region shows a very encouraging trend ie, is by 2018 buying through digital platforms would be roughly 50.9% of the total population.

Digital Buyer penetration

Retail E-commerce sales in India from 2012 to 2018

As per the data top 10 e-commerce companies holds their share of pie in this sector . E-retailer, Jabong e- retailer tops the chart with 26.26 % , followed by multinational company Amazon holds the second with 24.16% , third position is held by Flipkart with 22.39% and snap deal holds the fourth position with 20.99% and rest of them holds the remaining % in terms of the total sales by e retailers in India.

Retail e commerce sales

So e-commerce sector India is still in its early stage of growth, in terms of scale ability and reach it has long way to go, but growth in this sector would catch much faster than any other sectors .More new millionaires and billionaires are going to be from e-commerce sector.  India as a  market is considered widely potential, I believe our market is  the best fertile ground for new e-commerce  startups to sprout and find their feet on the ground  in the  coming future.